Workplace fraud is a growing problem involving employers that fail to properly classify workers as "employees," even when those workers legally should be classified as "employees". This business practice allows them to undercut competitors who play by the rules, deny workers critical workplace protections only guaranteed to employees and deprive taxpayers of critical dollars.

Recognizing the impact workplace fraud has on workers, law abiding employers and taxpayers, Governor O'Malley introduced and the General Assembly approved the Workplace Fraud Act of 2009 to crack down on the practice. The new law will take effect October 1, 2009. Regulations will be drafted, and DLLR will convene a working group to provide input during that process.

Governor O’Malley Creates Task Force to Crack Down on Workplace Fraud
Executive Order (PDF document, 182KB, download Adobe Acrobat for free)

View the Workplace Fraud Act of 2009

Frequently Asked Questions for Employers

Frequently Asked Questions for Workers

Governor O’Malley Signs Workplace Fraud Act of 2009

Updated July 24, 2009